B.C Court Of Appeal Rules Against Air
Canada In Its Fuel Surcharge Ticket Practices

By
Daniel Baxter

April 28, 2013 - The British Columbia Court of
Appeal has ruled against Air Canada in a class
action lawsuit, Unlu v. Air Canada. The case
involved the carrier charging passengers a fuel
surcharge and labeling it as a tax in which the
carrier kept the proceeds.

Air Canada filed an appeal after Supreme Court
of British Columbia in 2012, rejected the
airlines' argument that the court did not have
jurisdiction.

On or about October 15, 2008 Mr. Bulent Unlu
purchased an airline ticket from a travel agent
with Air Canada. The cost of the flight was
$870.26 and the taxes were $445.74 for a total
price of $1,326.

The ticket agent presented Mr. Unlu with an
electronic ticket which coded the tax portion of
the cost of the airplane ticket as “XT”. Within
the “XT” or tax portion of the cost of the
airplane ticket is an item coded as “YQ” and the
cost of that item was $340.40.

Unlu soon realized after he had purchased the
ticket he had been charged a fuel surcharge
which had been disguised as a tax. The $340.40
was not a tax and the airline pocked the money.
Air Canada knowingly and willingly represented
the “YQ” item as a tax charged to and collected
from the Unlu.

Unlu filed a lawsuit (Unlu v. Air Canada) in
April 2010 under the Business Practices and
Consumer Protection Act, S.B.C. 2004, c. 2 (the
“BPCPA”) with the Supreme Court of British
Columbia in which he alleged Air Canada
improperly charged a “tax and retained the money
for its own use.

The law firm of Poyner Baxter LLP of North
Vancouver said BA's practice of mixing actual
tax charges and airport fees (payable to
governments and airports) with vastly larger
false “taxes” paid into its own treasury, is
common amongst many international airlines.
Therefore, it could be expected that this
lawsuit, if successful, would impact
international fares sold in B.C. by several
airlines.

Air Canada argued before the court that British
Columbia's consumer protection laws are not applicable
to airline ticketing practices, the court did, not have
jurisdiction to hear the case because aviation is a
federal responsibility and that the carrier is immune
from British Columbia's Business Practices and Consumer
Protection Act, and as such, the lawsuit should be
dismissed.

In
2012, Supreme Court of British Columbia Justice Adair
rejected the airlines' argument and
ruled the case to move
forward. Air Canada appealed Adair’s ruling before
The B.C. Court of Appeal. David Neave Air Canada’s
lawyer said his client has not yet decided if it will
seek to appeal the case before Canada’s Supreme Court.